empty property rate relief, also known as vacant property relief, is a scheme offered by the government to provide financial support to property owners who have vacant or unoccupied properties. This relief can help to alleviate the financial burden of paying business rates on properties that are not generating any income. Understanding how empty property rate relief works and whether you are eligible for it can save you a significant amount of money in the long run.
Business rates, also known as non-domestic rates, are taxes paid by businesses and other non-domestic property owners. These rates are calculated based on the rateable value of a property, which is determined by the Valuation Office Agency (VOA). In England, business rates are administered by local authorities and are used to fund local services such as schools, roads, and waste collection.
When a property becomes vacant or unoccupied, the property owner is still required to pay business rates on the property unless they qualify for empty property rate relief. Empty property rate relief offers a temporary reduction or exemption from paying business rates on eligible properties. The relief is intended to incentivize property owners to bring vacant properties back into productive use and to prevent properties from falling into disrepair.
There are different types of empty property rate relief available to property owners, depending on the circumstances of the property. The most common types of relief include:
1. Temporary Empty Property Relief: This relief provides a 100% reduction in business rates for the first three months that a property is empty. After the initial three months, the property owner will be required to pay the full amount of business rates unless they qualify for another form of relief.
2. empty property rate relief: If a property has been empty for at least three months and is still on the market for sale or rent, the property owner may be eligible for a 100% reduction in business rates for an additional three months. This relief can be extended for up to a maximum of three years for industrial properties and two years for all other properties.
3. Listed Building Relief: Properties that are listed as buildings of historical or architectural significance may qualify for a 100% exemption from paying business rates while they are empty. This relief is intended to encourage property owners to preserve and maintain listed buildings, even if they are not currently occupied.
4. Charitable and Community Amateur Sports Club Relief: Properties owned by registered charities or community amateur sports clubs are entitled to an 80% reduction in business rates if they are empty. This relief is designed to support organizations that provide valuable services to the community.
To qualify for empty property rate relief, property owners must meet certain criteria set by the local authority. In general, properties must be unfurnished and unoccupied to be eligible for relief. Property owners will need to provide evidence of the property’s vacancy, such as utility bills or rental advertisements, to apply for relief.
It is important for property owners to be aware of the deadlines for applying for empty property rate relief, as relief is often granted from the date the property becomes empty rather than the date the application is submitted. Property owners should also be prepared to provide additional information or documentation to support their application, such as proof of ownership or evidence of efforts to market the property for sale or rent.
While empty property rate relief can provide much-needed financial support to property owners, there are some limitations to consider. For example, relief is only available for a limited period of time, after which property owners will be required to pay the full amount of business rates. Additionally, properties that are deliberately left empty to avoid paying business rates are not eligible for relief.
Overall, empty property rate relief can offer significant benefits to property owners who are struggling to cover the costs of vacant or unoccupied properties. By understanding how the relief scheme works and ensuring that they meet the eligibility criteria, property owners can take advantage of this valuable financial support. Whether you own a listed building, a charitable organization, or a vacant industrial property, exploring your options for empty property rate relief can help you to save money and bring your property back into productive use.